According to the Heckscher-Ohlin theory, if the proportion of labor to capital in a country is greater than the proportion of labor to capital in the rest of the world, we can conclude that the country is labor-abundant and will have a comparative advantage in the production of goods that use labor intensively.
Answer the following statement true (T) or false (F)
True
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The spending multiplier does not apply to investment spending by businesses
a. True b. False Indicate whether the statement is true or false
The impact of an increase in oil prices stemming from the growth of demand is probably going to ____ the wages of petroleum engineers
a. decrease b. increase c. leave unaffected d. be impossible to predict
Which of the following is true?
a. The price charged by a monopolistically competitive firm is equal to that charged by a perfectly competitive firm. b. The price charged by a monopolistically competitive firm is less than that charged by a perfectly competitive firm. c. The output produced by a monopolistically competitive firm is more than that produced by a perfectly competitive firm. d. The output produced by a monopolistically competitive firm is equal to that produced by a perfectly competitive firm.
If firms seek an average markup of 25% over labor costs, and this is consistent with labor demands at the natural rate, then in the long run
a) real wages will be 25% of the price level b) prices will be 4 times greater than wages c) wages will rise 80 cents for every $1 increase in prices d) wages will fall 25 cents for every $1 increase in prices e) prices will rise 25 cents for every $1 increase in wages